Viceroy Hotels - Expanding South

Viceroy Hotels - Collabrating With Marriott International

Having embarked on a major expansion of its hospitality business in south India, the Hyderabad-based Viceroy Hotels Ltd plans to raise another loan of Rs 56 crore to part-finance its expansion plans. The hotel company, which had already raised Rs 56 crore as part of its Rs 112 crore debt-finance plans, on Monday decided to approach the SBI and Canara Bank to raise another loan of Rs 56 crore to develop its Bangalore property.

The 250-room Bangalore hotel, which will also be managed by Marriott International Inc under the Renaissance brand, will require a total investment of Rs 160 crore. Viceroy Hotels raised the first tranche of Rs 56 crore from State Bank of Mysore and State Bank of Indore Ltd. K Narsimha Rao, director of finance for Viceroy Hotels, said that the loans were for a long-term period of 12 years. “The amount will be split equally between the two banks (SBI and Canara),” said Rao.

This is expected to happen in another 30 days. The company has already raised the Rs 460 crore it requires for a hotel project in Chennai. This five-star luxury property, with a total of 550 keys, will be a combination of JW Marriott with 350 rooms and a 200-room Marriott Executive Apartments. Located at MRC Nagar next to the Leela Palace project in Chennai, work on this hotel will be completed by December 2009.

The SBI, the State Bank of Mysore and the State Bank of Indore would extend most of the Rs 300 crore debt required for the project, while Rakesh Jhunjhunwala, and Sonata Investments, part from the original promoters of the Viceroy Hotels, would invest Rs 160 crore. Besides, two other hotels will be set up under Marriott’s economy hotel brand, Courtyard, in Visakhapatnam and Hyderabad.